Royal Dutch Shell's Dealings with Environmental Issues in Niger Delta

This report investigates Royal Dutch Shell's handling of environmental issues in the Nigerian Niger Delta. It examines the company's practices, including oil extraction and gas flaring, which have led to significant environmental pollution, impacting the local communities and ecosystems. The research employs a secondary research methodology, analyzing reports from Shell, the Nigerian government, and the World Bank, among others. The study explores the reforms implemented by Shell, the environmental issues they have caused, and the effectiveness of these actions. The findings highlight the role of Shell's leadership in corporate social responsibility and the impact of oil spills and combustion gases on the region. The report concludes with recommendations for improved environmental protection and corporate responsibility, addressing the need for better regulation, pipeline maintenance, and community engagement.

The Royal Dutch Shell Group Dealings with the Environmental Issues in the Nigerian
Niger Delta: Instigating Corporate Social Responsibility Reforms

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Abstract
Companies like Royal Dutch must go beyond the past and the present, redefine and restore a new
image of communicative responsibility, recognizing the various environmental problems
affecting the delta of Niger. This is the root cause of poverty and kidnapping, which has been a
failure of development efforts in the region. The aim of the research was to investigate the ways
through which Royal Dutch Shell dealt with the environmental issues in the Niger Delta by
bringing about the crucial reforms. For the attainment of the study aim, the researcher used
secondary research methodology. As per this methodology, the researcher reviewed the reports
of Royal Dutch Shell, Government of Nigeria, World Bank and other databases. The findings
revealed that the overall responsibility for the sustainability of Shell is linked to the company’s
chief executive of operations as well as the company’s internal chairmen committee. This
committee establishes primacies and ideals for sustainable growth and advancement, set morals
and responsibilities at all levels of the corporation. As a result, corporate social responsibility
policies have decreased from corporate headquarters to professional units and business supply
chains. Oil spills on the ground can cause the growth of vegetation over a period of time and, in
extreme cases, damage the vegetation. This study concludes that the new trends in the field of
tumour diseases in the Niger delta attributable to the impact of these people radioactive elements
from combustion gases.

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Acknowledgement
First of all, I thank my Children for all the support provided. During all this time, I am thankful
to them that I had the good time to finish my studies.
I also thank the supervisors and all academicians at the University for the training given to me
during these years and gave me their knowledge and experiences. Thanks to knowledge acquired
in this career without which this work could not be carried out.
I would like to say special thanks to lecturers, for their support, understanding and availability as
a teacher and a tutor throughout the preparation and completion of the present thesis. I am
thankful for the follow-up, motivation, timely recommendations and especially the time spent
and patience to review this work.
I am also thankful to my friends for their support and help when collecting information and get
the necessary materials. I also thank all the people (i.e. acquaintances, acquaintances of
acquaintances and all people) who allowed me to include their studies and opinion in the thesis.
They did it without knowing me and supported me through all possible way.

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Table of Contents
Abstract............................................................................................................................................2
Acknowledgement...........................................................................................................................3
1 CHAPTER ONE – INTRODUCTION....................................................................................6
1.1 Introduction of Chapter.....................................................................................................6
1.2 Background of the Study...................................................................................................6
1.3 Research Aim....................................................................................................................7
1.4 Research Objectives..........................................................................................................7
1.5 Research Questions...........................................................................................................7
1.6 The Rationale of the Study................................................................................................8
1.7 Research Significance.......................................................................................................8
1.8 Thesis Outline...................................................................................................................8
1.9 Summary...........................................................................................................................9
CHAPTER TWO- LITERATURE REVIEW...............................................................................10
1.1 Introduction.....................................................................................................................10
1.2 History of Niger Delta and the Presence of Royal Dutch Shell......................................10
1.3 Environmental Issues at Niger Delta and Royal Dutch Shell.........................................13
1.4 Theoretical Framework...................................................................................................14
1.4.1 Ajzen’s Theory of Planned Behaviour....................................................................14
2.X Summary of Literature Review.......................................................................................16
2 CHAPTER THREE- METHODOLOGY..............................................................................18
2.1 Introduction.....................................................................................................................18
2.2 Research Design..............................................................................................................18
2.3 Research Approach.........................................................................................................18
2.4 Sampling.........................................................................................................................19

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2.5 Data Collection...............................................................................................................20
2.6 Data Collection Criteria..................................................................................................21
2.6.1 Inclusion Criteria.....................................................................................................21
2.6.2 Exclusion Criteria....................................................................................................21
2.7 Data Analysis..................................................................................................................21
2.8 Ethical Consideration......................................................................................................22
2.9 Research Limitations.......................................................................................................22
2.10 Summary of the Chapter.................................................................................................23
3 CHAPTER FOUR – RESULTS AND DISCUSSION...........................................................24
3.1 Introduction.....................................................................................................................24
3.2 Results.............................................................................................................................24
3.3 Discussion.......................................................................................................................27
3.4 Specific Reforms by Shell and their Usefulness.............................................................29
3.5 Shell Reports on Reforms and its Comparison to Secondary Reports............................31
3.6 Summary of the Chapter.................................................................................................33
4 CHAPTER FIVE – CONCLUSION AND RECOMMENDATIONS...................................35
4.1 Introduction.....................................................................................................................35
4.2 The Conclusion of the Study...........................................................................................35
4.3 Recommendations...........................................................................................................37
References......................................................................................................................................38

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1 CHAPTER ONE – INTRODUCTION
1.1 Introduction of Chapter
The purpose of this chapter is to present the research background and the preliminary
foundations of conducting the study. The different sections included in the chapter are
background of the study, research aim, research objectives, research questions, rationale of the
study, research significance and thesis outline.
1.2 Background of the Study
Until 1956 along the Niger River Delta there was an unspoiled oasis. The mangrove
forests formed intricate labyrinths in which a delicate ecosystem developed in which the local
populations lived in balance with nature, drawing from it their daily livelihood (Ite, et al., 2013;
Kadafa, 2012). In that year, the first oil fields were discovered in the Delta, turning that oasis
into an inferno that still continues to burn today. Since then the oil companies, in particular
Royal Dutch Shell, which controls about half of the total crude oil has colonized the territory,
supported by weak and corrupt military governments, that over the last 50 years they have sold
off their country's natural resources in exchange for bribes and illicit profits, and have silenced
the injustices that the local populations are forced to suffer daily (Kadafa, 2012).
According to Ite, et al. (2013), environmental pollution is caused by the loss of crude oil
escaping from old and weather-worn pipes that extend into the territory for hundreds of
kilometres, thus pouring oil into the water of the river and along its banks. People who live in
this place breathe polluted air, eat contaminated fish and drink water mixed with oil (Ite, et al.,
2013). It has also been found that there are 36 thousand km² of mangroves, streams and lagoons
invaded by black mud; to supply drinking water, local populations are forced to dig underground
up to 50 meters deep, causing instability of the ground and placing the area at risk of landslides
(Pegg and Zabbey, 2013). It has also been studied that even the air is contaminated by gas, by-
products of oil extractions, which are burned in the open air since 1985, a practice called "gas
flaring" (gas explosive) that wastes a quantity of gas every year equal to 30% of European needs
(Pegg and Zabbey, 2013). This gas could be reinserted into the subsoil or used for Nigeria's
energy needs. Instead, it is burned by the multinationals, like Shell because this makes the

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extraction of oil much faster, thus lowering the costs of management and production (Ekatah, et
al., 2011).
The flames burn continuously during the day and illuminate the night, making the air
unbearable, considerably increasing the temperature around the drilling and causing respiratory
problems, diseases of the skin and eyes, gastrointestinal disorders, leukaemia and cancer (Pegg
and Zabbey, 2013). The Nigerian law prohibits the practice of "gas flaring" because it is
considered dangerous for the environment and for human health, but governments have never
managed to impose the solution of the problem (Ekatah, et al., 2011). The leaders of the Nigerian
state should strengthen the regulation on the extraction of oil, in order to oblige oil companies to
respond to environmental pollution (Kadafa, 2012; Ite, et al., 2013). In the light of the discussed
background, the research is intended to examine how the companies like Royal Dutch obliged to
deal with the environmental issues caused in the Niger Delta due to the oil exploration activities.
1.3 Research Aim
The aim of the research is to investigate the ways through which the Royal Dutch Shell
group dealt with the environmental issues in the Niger Delta by bringing about the crucial
reforms.
1.4 Research Objectives
In order to accomplish the mentioned aim of the research, the study is intended to
accomplish the following objectives:
1. To study what reforms of the Royal Dutch Shell Group have been implemented in Niger
Delta
2. To examine the environmental issues caused by the Royal Dutch Shell group in Niger
Delta
3. To investigate the strategies or actions taken by the Royal Dutch Shell group in Niger
Delta to address environmental issues
4. To determine the effectiveness of the reforms adopted by Royal Dutch Shell against the
environmental issues in Niger Delta

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1.5 Research Questions
In the light of the research aim and objectives, the following research questions are
expected to be answered through this research:
1. What are the practices of the Royal Dutch Shell group in Niger Delta?
2. What are the key environmental issues caused by the Royal Dutch Shell group in Niger
Delta?
3. What strategies or actions have been taken by the Royal Dutch Shell group in Niger Delta
to address environmental issues?
4. What else could be the best approaches through which Royal Dutch Shell Group in Niger
Delta can address environmental issues?
1.6 The Rationale of the Study
From the discussed background and literature, it has been cleared that it is necessary to
address the environmental issues. As it can be seen in case of Royal Dutch Shell that the
company’s oil extraction and production practices are the key reason of oil spillage in Niger
Delta, which led to several environmental issues as well as significantly affected the livelihood
of the people in the region. In the light of the discussed facts, it is necessary to further elaborate
the environmental issues and the strategies that can be considered to address the certain issues.
1.7 Research Significance
The research is valuable because it addresses the environmental issues and the ways
through which the Dutch Shell Group has responded. In addition, the study is necessary to
conduct because of the increasing oil spillage and carelessness of Shell in controlling the leakage
of oil. Oil is still flowing in the rivers and creeks at Goi and other villages because the Shell
installations have still not improved. The pipeline is hardly maintained and is poorly protected
against criminals trying to steal oil (Pegg and Zabbey, 2013). Therefore, it is necessary to
investigate the issue so that more protection to the environment can be provided.
1.8 Thesis Outline
The thesis is divided into different sections begins with the problem statement or
background that signifies the importance of conducting this research on the specified area. The
chapter also defines the research aim, objectives and questions along with the rationale of

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conducting this research. It is followed by the Literature review chapter that presents the analysis
and review of the studies conducted by the earlier researcher in the context of the Shell and its
practices in the Niger Delta. After that, the methodology chapter comes, which demonstrate the
overall design of the research along with the way through which the data is gathered to
accomplish the research aim and objectives. This chapter also consists of the limitation of the
study and the ethical consideration that has been followed in this research to avoid the issue of
biases. It is then followed by crucial and discussion chapter, in which the systematic review and
analysis of the selected articles in given along with the discussion on the research questions.
Finally, the conclusion and recommendation of the entire study are given.
1.9 Summary
 As the purpose of this chapter was to focus on the background research and some other
aspects discussed.
 Based on, it has been concluded that the Nigerian law prohibits the practice of gas flaring
because it is considered dangerous for the environment and for human health, but
governments have never managed to impose the solution of the issue.
 The previous studies indicate that leaders of the Nigerian Government should strengthen
the regulation on the extraction of oil, in order to oblige oil firms to respond to
environmental pollution.
 In the light of the discussed facts, it is necessary to further elaborate the environmental
problems and the strategies that can be considered to address the certain issues.
 In this regard, the next chapter provides a comprehensive overview of what actually is
and what should be done.

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CHAPTER TWO- LITERATURE REVIEW
1.10 Introduction
The aim of this chapter is to review the literature in respect of Corporate Social Responsibilities
(CSR) and how organisations deals with environmental issues. It discusses the history of the
Nigerian Niger Delta and the presence of the Royal Dutch Shell. Issues relating to environmental
and the associated theoretical framework were also discussed. It concludes by summarising the
literature as obtained in public domain for further analysis the subsequent chapters. The key
sections of this chapter include history of Niger Delta, and Royal Dutch Shell, environmental
issues at Niger Delta, theoretical framework and the chapter summary.
1.11 History of Niger Delta and the Presence of Royal Dutch Shell
The strong dispute over energy resources at the mouth of the Niger River in southern Nigeria has
been one of the most resonant African conflicts for decades. The marginalization, confinement
and impoverishment of the Ogoni and the Ijaw - that is what the ethnic tribes of the coastal
provinces of Rivers, Bayelsa, and Delta are called - have contributed to an escalation of tension
between the locals and the federal government (Obi, 2016). To understand the underlying
problem, it is better to take a brief look back in time and discern the three chronological stages
that have shaped the current panorama of the conflict, namely: the beginning of oil exploitation,
the hegemony of Royal Dutch Shell and the period after independence.
In the year 1903, in the southern coastal region of present-day Nigeria, which became a British
protectorate (1901) and later a colony (1914), a large deposit of minerals and hydrocarbons was
discovered, such as coal, bitumen, oil and natural gas. The British company Nigeria Properties
Ltd. then began activities of exploration and extraction of oil, reaching a production of 2,000
barrels per day in 1905. Later, in 1937, and after the success of several oil companies, the Anglo
multinational - Dutch Royal Dutch Shell took over the monopoly of exploration activities for oil
sources -and, to a lesser extent, other hydrocarbons-, reaching production rates of 5,000 barrels
per day (Obi, 2016).
Three decades later, after independence and the official establishment of the Federal Republic of
Nigeria (1960-1963), the military government of Yakubu Gowon undertook a policy of
nationalization and acquisition of foreign firms in the country, obligating them by legal mandate

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to re-register through joint ventures with state companies. In this way, it managed to transform
this activity into the main strategic sector for the country's economy. Furthermore, taking into
account the entry of Nigeria into OPEC in 1971, it is not surprising that the federal government
has, to date, 60% of the share in the capital of practically all of the active oil companies,
occupying an important role as a majority partner (Obi, 2016). On the contrary, the civilian
population of the area has been the big loser. The ethnic minorities most affected by the activities
of prospecting, extraction and commercialization - with the subsequent enrichment for some and
the contamination of the environment for others - have been demanding the attention of the
government and demanding legislative measures of environmental and social protection for
decades (Obi, 2016).
On the one hand, the locals claim "environmental justice", defined by the Environmental
Protection Agency of the United States as "fair treatment and meaningful participation in
political decision-making processes on activities that affect the natural environment of all
peoples, regardless of their race, colour, and culture, concerning the implementation and
application of environmental laws, regulations and policies" (Obi, 2016). The Ogoni and the Ijaw
are people dedicated primarily to agriculture and fishing as a means of subsistence for which the
natural environment is the only and main source of wealth. They protest against the already long
connivance (since independence) between the government and the multinational oil companies,
calling them both "expropriators and polluters" and blaming them for the impoverishment of the
region and the deplorable state of the rivers that circulate through it. They also claim their rights
to obtain and use, for their local communities, the corresponding part of the benefits that the
exploitation of the energetic deposits reports, since they are traditionally settled on a large stock
of crude oil (Botchway, 2011).
Corruption, clientelism and structural weakness of the government, added to its great interest and
dependence on this sector - which has come to represent a benefit for the national economy of up
to 55% of GDP in the mid-1990s according to the World Data Bank statistics - makes it
extremely difficult for the president and his cabinet to agree to address the needs of these
communities of the Niger River Delta (Botchway, 2011). In the Niger Delta, an oil-rich region in
the south-east of Nigeria, the activity of oil multinationals including Royal Dutch Shell has
caused serious environmental, social and economic damage. The extraction of crude oil has

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caused pollution of the reservoir and the land has destroyed the subsistence crops and
expropriated the land to the Nigerian population (Hennchen, 2015).
Royal Dutch Shell is responsible for oil extraction in the Niger Delta. According to the statistics,
the actual oil extraction is carried out by Royal Dutch Shell (47 per cent) followed by
ExxonMobil (22 per cent), Chevron Texas (19 per cent) and ENI (5 per cent) (Ruffin, 2012). It
shows that Shell has a maintained a strong competitive position in Niger Delta when it comes to
oil extraction and production. As a whole, Royal Dutch Shell has 90 oil fields and 1,000 oil wells
in Nigeria (Ruffin, 2012). Thus, the conflict in the Niger Delta constitutes a clear case of
globalization, since oil extraction involves a set of transnational forces, non-state actors and
interdependent processes. Fruit of the prolonged situation of malaise of the indigenous tribes of
the area, have grown two movements in denounce of the profit on the part of a government that
barely invests in the development of this region of the country, immersed in poverty and
abandonment, and degraded for the exploitation of their natural resources (Botchway, 2011).
On one side is the Movement for the Survival of the Ogoni People (MOSOP), created as a result
of the protests in the 1990s and used as a model for other civil associations to publicly express
their discontent with the negative impacts of the oil industry in the quality of life of the
inhabitants of the area. On the other hand, there is the Movement for the Emancipation of the
Niger Delta (with the English acronym MEND). The objective is to fight for the control of the oil
benefit for the ethnic minorities settled in the area. It is a military branch of MOSOP that has
already sabotaged oil pipelines and has kidnapped foreign workers from the factories, demanding
from the government a ransom for them, on several occasions (Botchway, 2011).
The most important thing of both movements is that they have attracted the attention of a large
number of local and international Non-Governmental Organizations, which have allied with
them and have begun to promote and make their cause visible to the entire international
community. Amnesty International, Human Rights Watch or Niger Delta Human and
Environmental Rescue Organization are some of the many entities that have opened a workspace
dedicated solely and exclusively to the question of the Niger Delta (Botchway, 2011). They
advocate worldwide for the defence of the environmental rights of communities affected by the
exploitation of resources and pollution of the natural environment. They have also managed to